Business Environment Analysis: Plus500 Company Governance and PESTLE

This report provides an in-depth analysis of the business environment surrounding the online trading company Plus500. It begins with an executive summary and then introduces the concept of the business environment, emphasizing both internal and external factors that influence an organization's operations. The report is structured into three key tasks. Task 1 explores the corporate governance and structure of Plus500, detailing its adherence to UK governance codes, conflict of interest policies, shareholder relations, and social responsibility commitments. Task 2 evaluates the importance of PESTLE analysis as a tool for understanding external factors that affect businesses, including political, economic, social, technological, environmental, and legal considerations. Finally, Task 3 applies the PESTLE framework to Plus500, examining the impact of each factor on the company's operations and profitability, considering aspects like political stability, economic growth, social trends, technological advancements, environmental concerns, and legal regulations.

Business
Environment

EXECUTIVE SUMMARY
This report has briefly explained definition of business environment. It has cover Three
task and in the first task, Report has introduced the structure and governance of the Plus 500
company. Task 2 report has Evaluate the importance of the PESTLE analysis of the organization
and in the last task report has given PESTLE analysis of the Plus500 company. Giving better
returns to their inverters and commitment towards consumers help business in sustaining in
market for longer duration. Financial industry is getting affected by changes occur after brexit.
Low interest rate encourage investment which help the firm in raising profitability. Effective
laws and IP laws secure the confidence detail which help in conducting online trading activities
in smooth manner.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
How plus500 PLC company is Governed and structured ..........................................................4
TASK 2............................................................................................................................................6
Impotence of PESTEL analysis..................................................................................................6
TASK 3............................................................................................................................................8
PESTEL analysis of Plus500......................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCE ................................................................................................................................11

INTRODUCTION
There are two factors which can have huge impact on the business, internal and external
factors of the environment which affect the business of the organization directly or indirectly.
They are known as the business environment; it is a part of the business management or a
marketing term. business environment helps to identify or analysis the business opportunity,
tapping useful resources, coping with the changes etc. this report will completely be related to
the Plus 500 company. Plus 500 is online trading company of the United Kingdom. Company
was founded in 2008 by the Alon Gonen, Mal Haber, the pluss500 company revenue was around
US$ 720.4 million, and its operating income was US$ 505.3 million or net income was US$
379.0 million in the last year 2018.
TASK 1
How plus500 PLC company is Governed and structured
Corporate Governance
Plus 500 company is listed on official list of premium listing segment, that's why this
company need to corporate government practices and policies with the United Kingdom
governance code and they will comply with approval of United Kingdom governance code.
Plus500 always provide report to the shareholders of the company on its compliance with United
Kingdom governance code in the listed rules.
Conflict of Interest
The plus 500 has provider for reviews and disclosure of the potential conflict and interest
in a compliance with any company laws. Directors of the company can have authorities for those
conflict matter by the board. Under a company low, any transaction of the company in which
directors have required a personal interest to approval of the board (Abdullahi and Zainol.,
2016). It will not be approving if company does not have their best interest. If any transaction of
the Plus500 company is any extraordinary then approval from audit committee required to bored
approval. IF any transaction of this company concern with the insurance or compensation then
they need to take approval from the committee, the board of directors and shareholders by way
of an ordinary resolution are required. If A director has their personal interest in the matter that
considers in bored meeting then the committee members may not give their vote or attend that
meeting regarding to the matter unless they do not have any interest on that matter. If majority of

the board and members of the committee will have any personal interest in a transaction, the
shareholder approval, by the way of ordinary resolution is also required.
Relationship with Shareholders
The Plus 500 company encourage both the private and public investors. This company's
chief Executive officer and finance officer with regularly with their investor. They give them
result of the last year and if any they are having any problem regarding to the investment then
they solve their problems (Deasy and et.al., 2016). They communicate with them during the
annual general meeting and interim reports of the company. Chef Main of the companies Audit
and other nominated committee members will be present to answer the question during the
meeting. Regular updates and all the articles of the Plus500 company is provided on their
websites. It also concludes the press releases and regular updates of the meeting provided by
board with the analysis and shareholders. And also, the opinions of the company broker are also
visible in the company’s website. It helps to generate interest on the shareholder and company
get new shareholder according to the performance of the company. Non-executive directors of
the company are available to meet the maturity of shareholder when it is required.
[e-mail] is another website where interested investors can contact to company.
Social responsibility
commitment to society
Committee of the Plus500 company are responsible for all aspects of the business. Their
main responsibility is to create a better, healthy and safe workplace where they all, can work
properly. Company know very well that mobile phones and other technology is helpful to bring
all the people and community together (Eling and Schaper., 2017). That's why the core
corporate and social responsibility efforts it uses to the same expertise, partnership and
technology it uses in working with customers of the company. This company believes that
Corporate and social responsibility is an important part of the good management.
Commitment to their employees
The plus 500 company is making batter environment for employees of the company
because they believe, employees of the company are most valuable assets. Talented employees
are reason behind they success of the company. They are giving equal opportunity to the
employees and create good management and proper directions for them. They are providing

training programs and working for employee’s relationship with superiors of the company.
Companies policies include the disability of the worker status.
Commitment to shareholders
The plus500 company giving better returns to their inverters and they are happy with the
returns they are getting from company. They maintain an optimal capital structure to reduce the
cost of capital.
Commitment to customers
customers can't be a subject to the unsupported balances and there is commission base
trade for their customers (Erasmus Strydom and Rudansky-Kloppers., 2016.). This company
does not utilize any cold calling technology and they don't offer binary options to them. They
give free demo account to the customers. Customers can use this account for trade and learn
trading online. When they will expert in trading, they can attach real money and make original
account. There are some risk management tools which is provided by company to their
customers and best thing about those tools is that they all are free of cost. This tool helps to
manage leverage and stop losses to help customer protect profits and limited capital losses.
Stricture of the company
The plos500 is an online based trading company and they are having online trading
application and website. There are 6 founders of the company in which 2 people are MD of the
company and 1 CTO. Company's chairmen are Penelope judf and Asaf Elimelech is an CEO of
the company. They are providing online trading platform where people can invest and earn some
revenue. In 2018 company generate revenue of 720.4 million USD. Company has their own
website where interested inverter can get company performance related data, according to that
they can invest on the company.
TASK 2
Impotence of PESTEL analysis
PESTEL is an important tool for organization to determine that how external factors
effect on the operations of the business. There are some external factors of the organization
which are political, economic, social factors, environmental factors and legal factors. This all are
external factors which may affect on the business activities and performance of the organization.
This can affect the probability of the company
Political Factors

Regulation of the government and legal factors are come under the political factors which
can affect on the environment of the business and trade market (Georgescu and Popescul., 2015).
It also includes factors such as trade regulation, tax by the government, employment low and
safety regulations. This can affect negative as well positive according to the tax structure of the
government. When companies expand their business on the global level then other countries
political factors can affect on the company
Economic Factors
Economic Factors which include growth of the economy, inflation rates
underemployment rates of any particular country, exchange rates and disposable income of the
customers. This factor can have direct or indirect impact on the consumer purchasing power and
anytime demand can be change and supply can also change. This factors directly effect on
companies’ services and their product. If they labor price will it can impact on the company’s
profitability. Companies can get better profit if then currency rated of the other country is lower
than their own countries currency
Social Factors
There is some element of the social environment which represent a demographic
characteristic like value of the population, distribution of age, distribution for income among the
employees and norms which effect on the operations and activities of the organization.
Population trends such as income distributions, growth rates and shifty emphasis etc. this all are
market essential for targeting new customers.
Technological Factors
Technological factors effect on the activities of the technology industry and market
unavailability or favorably. This influence the decision to enter the market or introducing new
product in the market or to outsource their production activities in other countries. Technology
helps to develop product and present that same product in unique way. Company can give better
compilation to their competitors (Eling and Schaper., 2017). There is some negative impact of
technology factors as well because some organization use technology to copy other's products
and use Thor data to make same products. Implementation of the new technology help
companies to gain competitive advantages and they can also increase their probability
Environmental Factors

environment factor has huge impact on the growth of industries. They are essential due to
the arability of natural resources, Row materials, carbon footprint target by the government. This
factor also includes some factors like weather, climatic conditions, Eco friendly products which
may be can affect the industries like Farming, tourism, agriculture and insurance. This factor can
also damage the product quality and make them unusable products. Company’s should make
product which does not effect on the environment
Legal Factors
Legal factored have similarities with the political factors. Legal factors include proper
and more specific laws like consumer protection low, labor low, shifty law, discrimination law,
copyright laws, protection laws etc. (Khan and Quaddus., 2015). it shows to an organization that
what are legal and illegal to make any trade successful without compromising principles and
ethics. It became trickier when company operate their business from global level since each
nation has Its own set of rules and regulation. They have to follow all the rules and regulation of
different counties. They cannot break any rules. Each nation has their own rules and their own
regulation. Every company who are trading in any particular company then they have to follow
pacific rules of that country. They have paid all legal taxes during the trade between the
countries.
TASK 3
PESTEL analysis of Plus500
Political Factor
Every county has their own political environment and system and Plus500 is providing
financial services to the more than 12 counties so they are exposing them self n different political
environment. This company has achieved success in a dynamic din ace service industry across
the worldwide to diversify the risk of the political factors and system. This company have closely
analyzed this factor before investing in other country. There is too much corruption in the other
countries and that all impact on the profitability of the company (Erasmus, Strydom and
Rudansky-Kloppers., 2016.). They have given tariffs to the government during any trade. They
are one of the fastest growing business recently . Stability of political situation is there recently
in the country. This supports in conducting operations without any political barriers. This
supports companies which are running in financial sector. Tariff related to financial things help

the Plus500 in gaining more profit. Brexit has affected many online trading companies because it
created trade barriers for them which affected their profit.
Economic Factors
Economic cycle, foreign exchange rates, inflation and interest rate determine the
aggregate the demand and investment in an economy. Competitive norms have impact on the
competitive advantages of the company. Plus500 is using factors like inflation & economic
indicators of industry like finance growth rates and spending of the customer etc. forecast the
growth trajectory of not only but sectors also that of company. They are having skillful
workforce in finance that is helping them to increase profitability of company (Kljucnikov and
et.al., 2016). Interest rate generate revenue for them and this helps in company growth. Current
growth of the company is declining. Recently country’s economic condition is sound and
interest rate is nominal hence financial sector companies are able to raise its profit by offering
amazing online trading services to wide range of customers.
Social Factors
culture of the society and way of doing their work impact on the culture of Plus500.
Attitude of the community plays on the marketers they are understanding the behavior of the
customers in target market (Uchihira, Ishimatsu and Inoue., 2016). According to that they are
designing new marketing messages for the financial services industry consumers. Some
entrepreneurial spirits and border nature of the society, some societies encourage
entrepreneurship while some don't. Every person has their own thinking and different attitudes
some of them are interested for investment and some are not this social factor affect the growth
of this company. Education level of people in the nation is good they understand the benefit of
online trading and kind of services. Hence young age people take more interest in online trading
which help Plus 500 in generating more profit. Class structure some times affect the demand but
it is manageable by the firm.
Technological Factors
Technology have an important role in Plus500 company because they are providing
online application and they totally work on online business. They are earning through the online
trading market (Georgescu and Popescul., 2015). They are giving competition to the other online
trading company because they are properly using technologies. They are giving their online
services to the all over the world and their application is available on the apple sores. This

application is one of the most downloaded application recently. They are having online website
as well where they are providing Analysis of company performance, reviews of the inverter and
every board meeting information. This all technology is helping them to grow more in this
industry. In the recent time many financial sector companies are using electronic transaction m
system and robot. Involvement of robot reduces human cost and mistakes which is made by
employees. This help Plus500 in reducing operational cost and raising productivity of firm.
Apart from electronic transaction make the work easy hence customer interest get increased
which help the firm in gaining attention of mass audience.
Environmental Factors
Different markets have different environmental standards and norms, which are impact
on the probability of the Plus500 company. Even within a country often states can have different
environment laws and liability laws environment factor has huge impact on the growth of
industries (Komljenovic, Loiselle and Kumral., 2017). They are essential due to the arability of
natural resources, Row materials, carbon footprint target by the government. This factor also
includes some factors like weather, climatic conditions, Eco friendly products which may be can
affect the industries like Farming, tourism, agriculture and insurance. This factor can also
damage the product quality and make them unusable products. Now government is very clear
about sustainability hence every businesses are trying to recycle its material to reduce the
wastage. Plus500 needs to do the same. Waste management practices of plus500 help business in
gaining competitive advantage.
Legal Factors
Plus500 company have business in global level and they are proving trading facility to
move them 12 countries. They have to follow the legal rules of the company where they doing
business. They to follow the legal rules and regulations of that particular country they cannot
break any rules. They have to buy all the legal right to do business in the other countries. The
legal framework and institution are not robust enough to protect the intellectual property rights of
the company (Virglerová, Dobeš and Vojtovič., 2016). The company should carefully evaluate
before entering in other markets as it can lead to theft or the company's secret sauce thus the
overall competitive edge. Some of the legal factors that Plus500 companies’ leaders should
considers while entering in a new market are – employment low, Data protections etc. Legal
factored have similarities with the political factors. Legal factors include proper and more

specific laws like consumer protection low, labor low, shifty law, discrimination law, copyright
laws, protection laws etc. IP protection act such as copyright act etc. help the firm in securing
their business idea. Apart from this, Anti trust legislation affect entire financial sector and help
the firms in growing well in market.
CONCLUSION
As per the Above report provide a brief knowledge and proper information related to the
business environment under this report has been mentioned meaning and definition of the
business environment. This report has been briefly analyzed and provide information of the
Plus500 company, complete overview and history of the company has been mentioned in above
report it is an online trading industry it was founded in 2008. Penelope Judd and Mr. Asaf
Elimelech are the chairmen and chief executive officer of the Plus500 company, this report has
been concluded the relationship between board of directors and committee members of the
company and its shareholders as well as employees of the company , it has been analyze
importance of the carrying out PESTEL analysis in the Plus500 company , briefly discussed the
affects of the macro environment factors on the Plus500 company online trading industry of the
UK.

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